Government launches inquiry into financial services IT failures

TSB faced ongoing issues with its online systems this year, followed by disruptions at Barclays and RBS Group.

The inquiry will focus on common causes of the operational issues and whether regulators have the skills to adequately hold people to account.

The Committee is seeking evidence on whether the incidents are becoming more frequent and what the effects will be as consumers and firms rely more heavily on technology.

It also wants to examine the risks associated with integrating banks or systems following takeovers and mergers and whether “single points of failure” exist in the financial services sector.

Nicky Morgan MP, chair of the Treasury Committee, said: “The number of IT failures at banks and other financial institutions in recent years is astonishing. Since becoming Chair of the Committee 16 months ago, there have been problems at Equifax, TSB, Visa, Barclays, Cashplus and RBS, to name a few.

“Millions of customers have been affected by the uncertainty and disruption caused by failures of banking IT systems. Measly apologies and hollow words from financial services institutions will not suffice when consumers aren’t able to access their own money and face delays in paying bills.

“As bank branches close and customers are ushered towards online services, the availability of those services is vital.

“The Committee has launched this inquiry to consider the causes and consequences of these failures, and will examine what industry and regulators are doing to promote operational resilience.”